MORGAN STANLEY Item 8.01 Other Events
The Compensation Committee based its decision on its assessment of
2020 was a record year for
- The Firm achieved record financial performance in terms of revenues and profit
before tax. Firm net revenues were
earnings per share of
- The Firm continued execution of its long-term strategy with the Wealth
Management acquisition of E*TRADE and the pending Investment Management
acquisition of Eaton Vance. The acquisition of E*TRADE positions the Firm as an
industry leader in Wealth Management across all channels and segments and
significantly increases the scale and breadth of the Firm's Wealth Management
franchise. The acquisition of Eaton Vance will establish Investment Management
as a leading asset manager positioned for growth.
- The Firm continued a clear and consistent strategy to transform the business to
emphasize more stable and durable balance sheet and sources of revenue, which
should provide more predictable results during various market conditions in the
future. The Firm's strategy to transform the business was recognized by
Moody's, with an upgrading of the Firm's rating to A2 senior (returning the
Firm to its pre-financial crisis rating) and then placing the rating under
review for possible upgrade. The market also recognized the Firm's progress in
2020, as reflected in top performance in total shareholder return versus peers
over 1, 3 & 5 year periods. During 2020, the
increased by 34% from
In addition, the recent stress test results confirmed the Firm's solid capital
position.
- The Firm focused on the health and wellbeing of its employees against an
extremely challenging backdrop that included the COVID health crisis,
extraordinary client financing demand, an increase in corporate defaults and
bankruptcies, and record market volumes. Early in the crisis, the Firm
committed to making no reductions in its workforce through 2020, providing
reassurance to its employees in a very difficult time. The Firm also
implemented changes in the best interest of its employees in response to the
COVID-19 pandemic, including having the vast majority of its employees work
from home and providing productivity resources when necessary, while
implementing additional safety measures for employees continuing critical
on-site work, COVID-19 specific medical benefits, extended childcare benefits,
mental health resources and modified work schedules. In addition, the Firm
announced a commitment to provide financial assistance to 2,000 street vendors
across
- The Firm strengthened its commitment to diversity and inclusion. As part of its
continuing efforts in this area, the Firm added a commitment to diversity and
inclusion as its fifth core value and announced the creation of the Institute
for Inclusion, a Firm-wide effort chaired by
invest in underserved communities, advance equity through giving, and drive
workplace diversity and inclusion. The Firm also supported a number of external
organizations driving racial equity, including the NAACP Legal Defense and
Universities. In addition, the Firm published its first Diversity and Inclusion
Report in 2020, reflecting the Firm's commitment to increase transparency and
accountability for progress.
The Compensation Committee set
Consistent with previous years, 75% of
Additional important information about the Registrant's incentive compensation
programs and governance, including an explanation of all material elements of
the compensation for
The information provided herein may include certain non-GAAP financial measures.
The definition of such measures or reconciliation of such metrics to the
comparable
This Report on Form 8-K may contain forward-looking statements including the
attainment of certain financial and other targets, objectives and goals. Readers
are cautioned not to place undue reliance on forward-looking statements, which
speak only as of the date on which they are made, which reflect management's
current estimates, projections, expectations, assumptions, interpretations or
beliefs and which are subject to risks and uncertainties that may cause actual
results to differ materially. For a discussion of risks and uncertainties that
may affect the future results of the Firm, please see "Forward-Looking
Statements" immediately preceding Part I, Item 1, "Competition" and "Supervision
and Regulation" in Part I, Item 1, "Risk Factors" in Part I, Item 1A, "Legal
Proceedings" in Part I, Item 3, "Management's Discussion and Analysis of
Financial Condition and Results of Operations" in Part II, Item 7 and
"Quantitative and Qualitative Disclosures about Market Risk" in Part II, Item 7A
in the Firm's Annual Report on Form 10-K for the year ended
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